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Maytag Corporation and Daewoo Electronics Corporation announced on Monday that they have entered into an exclusive agreement under which Daewoo will manufacture top-freezer refrigerators for Maytag.
Maytag announced last fall it was investigating a more cost-effective manufacturing solution for top-freezer refrigerators, which are currently produced at the company's plant in Galesburg, IL, U.S. Production at that facility will begin phasing out later this year, and the plant will be closed in late 2004. In addition, side-by-side refrigerators produced in Galesburg will be redesigned and produced at Maytag's plant in Amana, IA, U.S., and at a new manufacturing facility being built in Reynosa, Mexico.
"Our new refrigeration production strategy is designed to improve Maytag's future profitability and return on investment in this important product category," said Ralph F. Hake, chairman and CEO of Maytag Corporation. "Daewoo is a leading manufacturer of appliances with vast resources and capabilities. We're very pleased with this manufacturing agreement, and we look forward to working with Daewoo as this part of our refrigeration strategy unfolds."
Daewoo Electronics Corporation CEO Choong Hoon Kim, said, "Daewoo Electronics is delighted to partner with Maytag and to be working closely with a company that is at the forefront of the refrigerator market. We believe that Maytag's expertise in design and engineering coupled with Daewoo Electronics' commitment to manufacturing and implementation of innovative technology, will enable us to achieve our goal of providing a high quality product to our customers."
Under the new agreement, Daewoo will custom manufacture newly designed top-freezer refrigerators to Maytag specifications. The products will be marketed exclusively by Maytag through its normal distribution channels.
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